Hawke's Bay Regional Council is starting a feasibility study on the potential for investing in water storage infrastructure to serve the irrigation needs of Central Hawke's Bay district.

In December, Hawke's Bay Regional Councillors voted to proceed to a full feasibility study for the Ruataniwha Plains Water Augmentation project.

"Management of the region's demand for water is key to the economic, environmental, and social future of Hawke's Bay," said Chairman Alan Dick.

"This study is an important first step to find a way to help to secure the economic future of the farming sector and the Central Hawke's Bay community, and to unlock some of the production potential that could otherwise not be realised.

"Environmental issues are also a major concern in the district and this project should help to improve conditions in the rivers by alleviating the pressure on low summer flows."

The Regional Council will play a key role in facilitating the feasibility study in conjunction with the many stakeholders, including the landowners, iwi, council, community and other agencies who will be involved from the outset.

The Council is investing $882,000 at this stage and the Ministry of Agriculture and Forestry has committed considerable funding and advisory assistance. This initial investment will be used to establish a leadership group and the ownership company, carry out the initial studies, and identify the likely dam sits and irrigation zones to be served. The formation of the leadership group and working with the irrigators are two early priorities, and detailed aerial photography of potential sites is also starting this month.

The total cost of the study is estimated at around $2 million. Initial investment indicators show a positive value in this project with infrastructural and farming investment returns estimated at between 6-10%.

"It's still early days, and this feasibility study is a necessary step," said Chief Executive Andrew Newman.

"Council is developing a way forward which includes the establishment of a leadership group, and ongoing discussions with landowners and the many involved and interested parties."

Hawke's Bay Regional Council is placing a priority on working with farmers on best practice management and is trialling the use of nutrient stripping wetlands alongside rivers to prepare for the potential land use intensification.

"We're looking at a two year process for this stage of the scheme, but whatever happens, it is likely that the scheme would be established in stages," he added.

Hawke's Bay Regional Council considers water harvesting to be a great opportunity for the region, but there are also numerous significant risks and no certainty that any or all of the project elements will proceed.

ENDS